Definition ∞ Trading pairs refer to two different assets that can be exchanged for one another on a cryptocurrency exchange. These pairs specify the quote currency and the base currency for a transaction, such as BTC/USD or ETH/USDT. Traders use these pairs to determine the relative value of one asset against another and to execute buy or sell orders. The availability and liquidity of various trading pairs are crucial for market efficiency and price discovery.
Context ∞ In crypto news, the introduction of new trading pairs on exchanges often signals growing market interest in particular digital assets or emerging market trends. Analysts frequently examine trading volumes and price movements within specific pairs to assess market sentiment and identify arbitrage opportunities.
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